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During the year end 31 December 2018, Lisbon experienced the following transactions of events: i. Sold an asset to a finance company and leased it

During the year end 31 December 2018, Lisbon experienced the following transactions of events: 

i. Sold an asset to a finance company and leased it back for the remainder of its useful life 

ii. The company's statement of profit and loss prepared using historical costs showed a loss from operating its shops, but the company is aware that increase in the value of its properties during the period far outweighed the operating loss. 


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Explain how you would treat the items above in Lisbon's financial statements and indicate which of the Conceptual Framework's qualitative characteristics your treatment is based on (UND:6)

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